NOTES 67 the case of foodgrains. The price rise actually was preceded by a good rabi harvest. And strangely enough, price rise in India is described as a part of the global inflation. The trend in the world prices will clearly show that the magnitude of the rise in India is phenomenal and the world situation cannot explain it. According to the statistics provided by the International Labour Organisation, the price rise in India during the last decade was 90 per centwhereas it was 18.6 per cent in Kenya, 29,5 percent in Sri Lanka, 19.1 per cent in Thailand and 17.1 per cent in Iran, while in Canada, USA and Australia the rise was about 33 per cent. The late onset of the monsoon, a long dry spell in July and August and a downward revision of the estimated food production for 1971-72, according to one quarter of opinom, might have affected the market sentiment and encouraged farmers and speculators to hold back supplies. But it must be asserted here that the weather is a poor scapegoat and prices were rising much before anything was known about the prospects of monsoon in the coming season. A glance at the functioning of the economy will prove beyond doubt that there are deeper causes for the basic imbalances. Deepening economic crisis, decline in industrial growth rates, imbalances created by . the so-called green revolution which has helped the landlords and the rich peasants, mounting burdens of an iniquitous tax policy, deficit financing, growth of monopolies, highhanded operations of hoarders and speculators, inefficiency of the public distribution system and the powerful black money economy operating alongside the open economy are aspects which we must take into account in diagnosing the staggering price problem. During the last decade the total supplies as measured by the growth CONSU Prices TV TABL] MER PRICJvo years E 1 BINDE5One ye [ Bas< *ars May e, 1961—(1972 June 52=100 July ago ago A All commodities 181.2 188.0 193.2 197.9 202.4 1 Food articles 206.2 209.8 219.1 227.9 236.1 2 Industrial raw materials 198.8 195.8 173.8 182.1 188.9 3 Machinery & Transport Equipment 4 Manufacturers 146.1 152.0 158.1 165.1 165.9 173.2 166.0 173.7 166.7 173.8 5 Agricultural commodities 206.1 201.6 198.2 204.5 214.4 Consumer price index, (Industrial workes All India, 1961-62—100) 183 184 196 — — Source : Reserve Bank of India Bulletin, August, 1971